Commercial Significance of Insurance
Some of the major Commercial Significance of Insurance are described below:
1) Continuity of Business:
The continuing partner of a partnership firm must repay the dues and share of a retired or deceased partner. The insurance company pays the share and other dues of such a partner so that the remaining partners can continue to run the business.
As well as protecting the life and assets of individuals, insurance protects them as well from a variety of risks. Insurers can compensate losses caused by unforeseen events. In this way, insurance ensures the stability and safety of a business.